Two smart and meticulous financial analysts - Reggie Middleton and Mish - argue that Wells Fargo is insolvent. In yesterday's update to his June 11, 2008 analysis, Reggie shows that the lion's share of Wells Fargo's assets are in mortgages in the California, Florida and Arizona markets, which are all tanking. Mish, who has also been covering Wells for a long time, wrote on February 2nd that Wells is drowning in loan defaults, and has hidden staggering amounts of toxic losses off of its balance sheets, just like Citigroup: [Despite its claim that it is saving mortgages by reworking their terms,] 30% of Wells Fargo's reworked mortgage loans are 90 days past due or longer, one year after loan modification.
No comments:
Post a Comment